ROAS Calculator
Return on ad spend (ROAS) tells you how many dollars of revenue each dollar of ad spend brings back. Enter your numbers to get the multiple instantly.
ROAS Calculator
Every $1 of ad spend returns 5× in revenue (400% net of spend).
ROAS = Revenue from ads ÷ Ad spend. Result is a multiple (e.g. 5× = $5 back per $1 spent).
Formula
ROAS = Revenue from ads ÷ Ad spend
ROAS is expressed as a multiple. A 5× ROAS means every $1 spent on ads returned $5 in revenue. It measures revenue, not profit — pair it with your break-even ROAS to know whether a campaign is actually making money.
Worked example
A campaign spends $1,000 and drives $5,000 in attributed revenue. ROAS = 5,000 ÷ 1,000 = 5×. For every dollar spent, the campaign returned five dollars of top-line revenue.
What this tells you
ROAS is the most-quoted number in paid advertising because it answers the simplest question: is this campaign returning more than it costs? It is a gross, revenue-side metric — it ignores margins, returns, and fulfilment. That makes it fast to read across channels but easy to misuse, which is why most teams track it alongside break-even ROAS, CAC, and blended MER.
Benchmarks
Target ROAS is driven by margin — the leaner the margin, the higher the ROAS you need.
| Business type | Typical target ROAS |
|---|---|
| Low-margin retail / DTC | 4–6× |
| Mid-margin ecommerce | 3–4× |
| High-margin SaaS / digital goods | 1.5–3× |
| Brand / awareness campaigns | Below break-even can be acceptable |
Directional ranges only — your targets depend on margins, business model, and stage.
Common mistakes
Treating ROAS as profit — it ignores COGS, shipping, and returns.
Judging ROAS without knowing your break-even ROAS; a 3× can still be a loss at thin margins.
Summing per-channel ROAS across channels — overlapping attribution inflates the total. Use MER instead.
Comparing prospecting and retargeting ROAS as if they were equivalent.
When to use it
- Comparing the revenue efficiency of campaigns, ad sets, or channels
- Setting and tracking a target ROAS for a campaign
- Sanity-checking a campaign against its break-even ROAS before scaling
FAQ
What is a good ROAS?
It depends entirely on your margins. A 2× ROAS can be highly profitable for a software product with 90% margins and a loss-maker for a retailer with 30% margins. Calculate your break-even ROAS (1 ÷ gross margin) first, then aim comfortably above it.
Is ROAS the same as profit?
No. ROAS is revenue divided by ad spend — it ignores cost of goods, shipping, and other costs. A campaign can have a high ROAS and still lose money once margins are factored in.
ROAS vs MER — what's the difference?
ROAS is usually per-channel and based on attributed revenue. MER (marketing efficiency ratio) is blended: total revenue ÷ total marketing spend across every channel, which captures halo effects attribution misses.
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